Russian President Vladimir Putin, center, attends a signing ceremony of documents on the results of his meeting with heads of the leading energy companies at the economic forum in St. Petersburg, Russia, Saturday, May 24, 2014, as President of BP Russia, David Campbell, left, and CEO of state-controlled Russian oil company Rosneft Igor Sechin sign documents.
( (AP PHOTO/RIA-NOVOSTI, MIKHAIL KLIMENTYEV, PRESIDENTIAL PRESS SERVICE))

Thus far, sanctions have been only against individual officials, which make a statement more than anything else. They do not prevent companies from doing business with Russia. The nature of any further sanctions would be economic, hitting Russia where it hurts.

The deal with B.P. is instrumental not only because of its size, 12 million tons for around $2 billion, but because of its longevity. Rosneft will supply B.P. with oil and oil products over the next five years. What is more, Rosneft has demanded prepayment. The prepaid amount will be at least $1.5 billion, the majority of the total deal. In the event of economic sanctions, $1.5 billion dollars essentially disappear. B.P. will throw around all of the weight it has in Washington to prevent this from happening.

The exact pricing is being worked out now and deliveries on the contract are set to begin in July. B.P. C.E.O. Bob Dudley has made a strategic business and political move, though he told reporters, "I am working here with Rosneft. It's business between the companies. I don't comment on personal sanctions." Sechin offered a similar comment, praising the quality of oil, stability and profitability of the agreement rather than the political risk.

Rosneft is making it extremely difficult for the U.S. to issue economic sanctions against Russia. Their deals are large, long term and extremely lucrative. With this B.P. deal, U.S. officials have another big reason to avoid economic sanctions.